SMEs Growth in the Czech Republic: Some Macroeconomic Perspectives

Osakwe, Christian Nedu; Verter, Nahanga; Bečvářová, Věra; Chovancová, Miloslava

doi:10.11118/actaun201563062077

Cited by 5 publications

(5 citation statements)

References 22 publications

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“…Considering the case of Romania, the economic explanation of the short-term relationship appearing from the UR to the performance level in SMEs is as follows: as SMEs are a means of generating new jobs (Osakwe et al, 2015), when the UR increases, the performance in SMEs is decreasing. In fact, this idea was previously explicitly explained when a long-term relationship between these two variables was discovered in the cointegration testing phase.…”

Section: Discussionmentioning

confidence: 99%

Determinants of SMEs’ performance: evidence from European countries

Cicea

Popa

Marinescu

et al. 2019

Economic Research-Ekonomska Istraživanja

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This article aims to examine how certain economic and social factors influence short-and long-term performance of small and medium enterprises (SMEs). SMEs' performance is defined by using the value added (VA) by SMEs, as a percent of the total VA by enterprises. The study targets European Union (EU) countries selected by the authors following a cluster analysis procedure. In order to obtain short-and long-term influences, an analysis that carries out three types of tests is conducted: testing stationarity, testing cointegration and testing causality between the indicators identified as influencing factors and the variable measuring the performance of SMEs. The novelty and originality of this research are defined in terms of addressing the performance of SMEs from a new perspective, using an econometric basis in a macroeconomic view. From an econometric perspective, the results are among the most varied, both in the long-and short-term, however they also have a correspondent economic explanation. ARTICLE HISTORY

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Section: Discussionmentioning

confidence: 99%

Determinants of SMEs’ performance: evidence from European countries

Cicea

Popa

Marinescu

et al. 2019

Economic Research-Ekonomska Istraživanja

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“…A number of studies have been conducted on this thematic area relating to interest rate capping, domestic credit and also SMEs growth. However, our empirical estimates showed an insignificant relationship between domestic credit provided by the financial sector and SMEs growth (Osakwe, Verter, Bečvářová, & Chovancová, 2015). Yet again literature previous studies record none to have been carried out in Uasin Gishu County.…”

Section: Statement Of the Problemmentioning

confidence: 60%

“…Finally, the narrative pushed by banks that interest rate cap is responsible for the credit crunch facing Small and Medium Enterprises (SMEs) has been effectively debunked (Osakwe, Verter, Bečvářová, & Chovancová, 2015).The MSMEs despite the panacea options to bettering their growth following these interventions have not been seen to be moving positively towards such actions to bettering their profitability. A number of studies have been conducted on this thematic area relating to interest rate capping, domestic credit and also SMEs growth.…”

Section: Statement Of the Problemmentioning

confidence: 99%

The Moderating Effect of Interest Rate Capping on the Relationship Between Domestic Credit Lending and Growth of Micro, Small and Medium-Sized Enterprises in Uasin Gishu County, Kenya

K.,

NYANGAU (Ph.D),

KIMUTAI (Ph.D)

et al. 2020

strategicjournals.com

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The purpose of the study was to establish the moderating effect of interest rate capping on the relationship between domestic credit lending and growth of MSME firms in Uasin Gishu County in Kenya. The specific objectives of the study included; to determine the relationship between commercial bank credit lending and growth of the MSME firms in Uasin Gishu County in Kenya, find out the relationship between informal lenders credit lending on the Growth of the MSME firms in Uasin Gishu County in Kenya evaluate the moderating effect of interest rate capping on the relationship between domestic credit lending and Growth of MSME firms in Uasin Gishu County in Kenya. The study is anchored on loanable funds theory, abstinence theory and Agio theory. The study adopted an explanatory research design with a target population of 204 from management team, accounting and finance team as respondents drawn from 102 agro processing MSMEs. The study adopted census enquiry to arrive at the respondents' size of 204 respondents. Data was collected using closed ended questionnaires designed by 5 point likert scaling. Data was analyzed using descriptive and inferential statistics using SPSS version 24. The types of domestic credit lending under study jointly explained 60.3 percent variation in growth of MSMEs. This showed that considering the two independent variables commercial bank credit lending and informal lenders credit lending, there is a probability of 54.7 percent (R 2 =0.547) variation in the growth of MSMEs. However, with the interest rate capping as a moderator, the variables jointly explained 60.7 percent (R 2 = 0.607) variation in growth of MSMEs. Therefore the study concludes that interest rate capping significantly moderates the relationship between domestic credit lending and growth of MSMEs. All the domestic credit lending types are significantly related to growth of MSMEs. In this regard the government needs to enforce strict monetary and fiscal measures for regulating interest rate to make domestic credit affordable to borrowers. Besides that, MSMEs, should put strategies of building a credit history and lower domestic credit lending agents perceptions of risk associated with this type of lending to increase their access to credit and performance of the MSMEs.

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“…Notwithstanding the progress made in financial economics and management, the literature on the volatility of IERs and the performance of SMEs in Nigeria and elsewhere shows that there seems to be no consistency in the literature concerning the nature and direction of the relationship (Osakwe, Verter, Becvarova & Chovancova, 2015;Isola & Mesagan, 2018;Udoh, Gbande, & Acha, 2018). Even more so, separate analysis of the interest rate, on the one hand, and the exchange rate, on the other, have been carried out regarding SMEs' performance, a handful of studies having considered their joint effect.…”

Section: Problem Statementmentioning

confidence: 99%

Interest rate and exchange rate volatility and the performance of the Nigerian informal sector: Evidence from small and medium-sized enterprises

Osahon¹

2021

Ekon horizonti

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This paper investigates the joint impact of interest rate and exchange rate volatility on the performance of the informal sector in Nigeria, focusing on Small and Medium-sized Enterprises (SMEs). The annual time-series data on the exchange and interest rates for the period 1981-2018 were obtained from where exchange and interest rates volatility data were computed. The data analysis was carried out using descriptive statistics, correlation, a unit root test, an Autoregressive Distributed Lag (ARDL) bound test for cointegration and the ARCH regression model. The results obtained by the ARDL bound test confirmed the presence of the long-term relationship between interest and exchange rates volatility and SMEs' performance, which suggests that all the variables of interest move together in the long run. Moreover, the ARCH regression model showed a positive impact of exchange and interest rates volatility on SMEs' performance. However, only exchange rate volatility was significant. Thus, policy makers should pursue the interest rate and exchange rate regimes that will encourage massive investments in SMEs. This, in turn, would increase the performance of SMEs. Also, the monetary authorities should implement the policies aimed at curtailing incessant volatility in the exchange rate and the interest rate so as to protect SMEs from the external perturbations of the movements of the exchange rate and the interest rate.

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SMEs Growth in the Czech Republic: Some Macroeconomic Perspectives

Cited by 5 publications

References 22 publications

Determinants of SMEs’ performance: evidence from European countries

Determinants of SMEs’ performance: evidence from European countries

The Moderating Effect of Interest Rate Capping on the Relationship Between Domestic Credit Lending and Growth of Micro, Small and Medium-Sized Enterprises in Uasin Gishu County, Kenya

Interest rate and exchange rate volatility and the performance of the Nigerian informal sector: Evidence from small and medium-sized enterprises

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